An excellent yet surprising showing of strength last week with the market 5/15 dearer with an offering of 72,000 bales nationally with a little help from a weakening exchange rate. Weekly offerings are now expected between 45/55,000 bales until Easter, however recent rains particularly in NSW & QLD could further reduce these numbers and put upward pressure on the market. It is worth noting also the dynamics of offered quantities have changed with a large portion of crossbred wool now selling, so suitable merino types once inferior drought types are excluded are in very short supply. I mentioned last week China is rejecting current US price levels and this is still the case with only limited sales reported usually at a discount to the physical market, so the market remains delicately poised between supply and demand. Expect a dearer tone again this week with the Australian dollar back down to 86.5 US cents.